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ICPS $10$: EOQ

Unanswered

A bakery buys flour in $25-$pound bags. The bakery uses $1,215$ bags a year. Ordering cost is $$10$ per order. Annual carrying cost is $$75$ per bag. If holding costs were to increase by $$9$ per year, how much would that affect the minimum total annual cost?

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a total cost will decrease by $$78\mathrm{.}17$ per year

b total cost will increase by $$78\mathrm{.}17$ per year

total cost will increase by $$78\mathrm{.}71$ per year

d total cost will remain the same